A09705 Summary:

BILL NO    A09705 

SAME AS    SAME AS UNI. S07618

SPONSOR    Thiele

COSPNSR    

MLTSPNSR   

Amd S218, Gen Muni L

Increases the maximum contribution under a defined contribution plan service
award from $700 to $2,100.
Go to top

A09705 Memo:

BILL NUMBER:A9705

TITLE OF BILL:  An act to amend the general municipal law, in relation
to increasing the maximum contribution under a defined contribution
plan service award

PURPOSE OR GENERAL IDEA OF BILL:

Increase the maximum contribution under a defined contribution plan
service award.

SUMMARY OF SPECIFIC PROVISIONS:.

Subdivision (b) of Section 218 of the General Municipal Law is amended
to increase the maximum contribution under a defined contribution plan
service award program from $700 per year of service to $2100 per year
of service.

JUSTIFICATION:

Length of Service Award Programs (LOSAP) are pension- like programs
intended to help recruit and retain volunteer firefighters and
volunteer ambulance squad members. There are different types of LOSAP
programs. One is a defined contribution plan where an organization
defines a set, cash contribution it makes each year. In a defined
benefit plan, an organization defines what the cash payout to the
volunteer will be at the entitlement age. Under current law, even the
largest defined contribution programs provide a much smaller end
benefit than almost all of the existing defined benefit programs.
However a defined benefit plan has more investment return risks and
mortality risks, and is becoming less popular.  Providing an
alternative the direct benefit plan in the form of a more generous
direct contribution plan with less cost volatility is necessary. The
current defined contribution has remained at $700 for a long period of
time, and thus has not been changed to reflect the need to incentivize
volunteers at organization with defined contribution plans.

PRIOR LEGISLATIVE HISTORY:

New Legislation, 2014

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.
Go to top

A09705 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

           S. 7618                                                  A. 9705

                             S E N A T E - A S S E M B L Y

                                     May 16, 2014
                                      ___________

       IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
         ed, and when printed to be committed to the Committee on Local Govern-
         ment

       IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
         to the Committee on Local Governments

       AN ACT to amend the general municipal law, in relation to increasing the
         maximum contribution under a defined contribution plan service award

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  Subdivision  (b)  of section 218 of the general municipal
    2  law, as amended by chapter 452 of the laws of 2004, is amended  to  read
    3  as follows:
    4    (b) The sponsor of a defined contribution plan shall contribute to the
    5  plan a fixed amount of money, as determined by the sponsor, on behalf of
    6  each participant who is credited with a year of service. The minimum and
    7  maximum  contribution  requirements  for  a defined contribution service
    8  award program shall be as follows. The minimum contribution shall be one
    9  hundred twenty dollars per year of  service.  The  maximum  contribution
   10  shall  be  [seven]  TWENTY-ONE  hundred dollars per year of service. The
   11  maximum number of years of service for which a participant may receive a
   12  contribution shall be forty years. The sponsor shall appropriate annual-
   13  ly an amount sufficient to pay the contributions.
   14    S 2. This act shall take effect immediately.




        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15251-01-4
Go to top
Page display time = 0.1035 sec